Power-starved Karnataka may have to live with peak hour deficit for many more years as there is no possibility of major capacity additions in generation in the next four years. The state will have to meet its demand and supply gap by buying power from independent power producers from outside the state, a top official said.
“Presently, the peak hour deficit in Karnataka is around 4.4 per cent and the demand is of the order of 8,600 Mw. There are many challenges in managing the peak hour demand for the state electricity supply companies (Escoms). Due to various bottlenecks in the system, there is no possibility of commissioning new power stations,” M R Sreenivasa Murthy, Chairman, Karnataka Electricity Regulatory Commission (KERC), said.
Power capacity addition unlikely in the next four years.
Addressing members of the Bangalore Chamber of Industry and Commerce, here on Friday, he said shortage of coal in the domestic market and high cost of coal in the international market has made it difficult for power producers to make capacity additions.
Though the state government has announced several mega power projects, the possibility of realising them is very weak other than the second unit of 500 Mw unit of Bellary Thermal Power Station and the 600 Mw second unit of the Udupi Power Corporation Ltd in the near future, he said.
However, the demand for power is increasing at a rate of 8,000 million units per annum in the state, forcing the government to buy power on short term and medium term from outside the state to meet the demand and supply gap during the summer months, he added.
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“The challenge for Escoms is to strengthen distribution networks and improving efficiency to reduce the transmission and distribution losses. Though the Escoms are reducing their T&D losses by around 1 per cent every year, they need to give more thrust on further reduction,” Murthy said.
Presently, the T&D losses are of the order of 21 per cent in Karnataka, which is much lesser than in many other states. “If the Escoms can reduce their transmission losses by 10 per cent, they can save power equivalent of close to 900 Mw on a daily basis. This means, net savings to the tune of Rs 5,000 crore,” he said.
The situation would improve by 2013 when the national power grid is commissioned. This would enable the Escoms to draw power as and when there is a need, he said.
Murthy said, the KERC has called for a public hearing in September to elicit views on the demand of Escoms for a hike power tariff. The Escoms have sought an increase of 88 paise per unit in the power tariff and the matter is before the KERC for a decision, he said.
“It is inescapable to increase the power tariff as the supply companies are forced to buy power at a higher cost from the producers, who are incurring additional expenditure due to the rising cost of coal in the international market,” Murthy added.